Gerber Guaranteed Issue Life Insurance Review

Gerber Life Insurance Pic

 

Today, I am going to take some time and review a “baby brand name” life insurance product.  Now, this product is actually available from Gerber Life Insurance Company.  Gerber Life Insurance Company is located in Freemont, MI and was founded in the year of my birth…1967.  Gerber is best known for their “Grow Up Plan” a whole life insurance product for children.  We will be posting other Gerber life insurance reviews in the future.  For now, we will start with my review of Gerber Guaranteed Issue Life Insurance.

Sorting Thru Your Life Insurance Options

Shopping for life insurance can be real frustrating.  Let’s face it, no one likes shopping for it, paying for it and certainly not thinking about it.  With that said, it is still very important that you consider all of your options so you can take the best course of action for you and your loved ones.

There are several different products on the life insurance market, but literally hundreds of different insurers offer those products.  Each one has its positives and negatives.

Gerber Life guaranteed issue life insurance is a no medical exam policy.  Qualification is simple.  You just need to be between the ages of 50 and 80 and have a social security number.

That’s all.  There are no medical questions either.  So, in other words, you do not let any health situation stand in the way of getting coverage for yourself.

Gerber prides themselves in offering some of the lowest rates for guaranteed issue life insurance.  They use the terminology “budget minded” for this product.  Gerber is a financially strong insurer so you should feel safe applying for coverage if this Gerber product is best for your needs.

As an independent agent working with numerous carriers and a using very capable team, we are able to handle an application on the phone when you are ready to purchase coverage.   We gather all of your information, including contact info, your beneficiary(s) and your chosen payment method. We also share with you all the necessary disclosures.  Your coverage would be “in force” as soon as your payment is cleared and your policy will promptly follow.

Make sure you consider all the facts and your product options before purchasing life insurance.

Gerber Life Insurance Company Product Highlights

Yes, most of you know that Gerber is a baby foods company.  Did you know they got into “baby business” in 1928?  Now, it is important to note that Gerber Life Insurance Company is actually a separate but associated affiliate of the Gerber Products Company.  Gerber Life is a reputable, financially sound insurance company.

Under the Gerber Guaranteed Issue Life option, any adult 50-80 shall have no health questions an no medical exams.  Simply put, your acceptance is guaranteed provided you can pay the monthly premium.  These types of policies have been popularized with the phrase, “Guaranteed Acceptance Life Insurance” which is nothing more than a guaranteed issue life insurance policy.

The policy offers guaranteed coverage from a minimum of $5000 all the way up to $25,000.  Now, how do they do that?  Couldn’t someone on their deathbed take advantage of that?  Yes and no.  Gerber Life’s guarantee is based on what is called graded death benefits.   If, during the first two years that the policy is in force and natural death occurs, any and all premiums are paid back to the beneficiary with an additional 10% interest.  That is the benefits payable to your beneficiary.  There will be no further payout.   For accidental death at any time, the full death benefit will be paid to the beneficiary.

Now, after two years of ownership and the insured dies, the policy will be the full death benefit claim to the beneficiary(s).  That is the key not to overlook folks!!  This is the only way a life insurance company can offer life insurance to very ill people.

You must understand, waiting 2 years for full coverage is the nature of all “guaranteed issue life insurance” or “guaranteed acceptance life insurance” and not just Gerber.  Companies would be at a complete loss otherwise. You can take a look at our review of Colonial Penn’s Guaranteed Acceptance Life Insurance right here.  It includes their well known guaranteed acceptance life insurance product.  You may also know it as the Alex Trebek life insurance advertisement.  The product is a bit different, costs more and the benefit amounts are lower the first 2 years.

In any Gerber life insurance reviews site you visit, be sure you are comparing apples to apples.  Make sure you are reading specifically about the Gerber guaranteed issue life insurance product.  The company has alternate products such as the Gerber Grow Up Plan which is for children and priced quite differently.

 Gerber Guaranteed Issue Life Insurance Rates

Something to take note of here… premiums are guaranteed for life.  The death benefit (coverage amount) will never go down.  Remember, life insurance is contingent on you keeping up on your premium payments.  Yes, you can pay annually for a small discount but we won’t discuss that here.  Here are 4 common Gerber quotes to get you in the ballpark.  These quotes are current as of the writing of this article and may be different at a later date.  This is for illustration only.

If your age or coverage amount is higher or lower than shown in these examples the premium will vary up or down from there.

Coverage Amount $10,000

Age              Male                    Female

Age 50         $38.41                    $28.14

Age 60         $56.65                    $46.48

Age 70         $87.91                     $68.75

Age 80         $220.92                 $152.17

Coverage Amount $15,000

Age              Male                    Female

Age 50         $57.15                    $41.75

Age 60         $84.52                   $69.25

Age 70         $131.40                  $102.67

Age 80         $330.92                $227.79

Coverage Amount $20,000

Age               Male                   Female

Age 50          $75.90                  $55.37

Age60           $112.38                 $92.03

Age 70           $174.90                $136.58

Age 80           $440.92               $303.42

Coverage Amount $25,000

Age               Male                    Female

Age 50          $94.65                    $68.98

Age 60          $140.25                 $114.81

Age 70           $218.40                $170.50 an

Age 80           $550.92                $379.04

If you have looked at these rates and decided you want rates that are accurate for your age, you can go to our personal quote page and fill out the contact information including “Gerber Guaranteed Life” in the message box.  Your second and likely fastest and direct option is to simply call us at 800-598-6445.  The instant quote widget to your right can be used to contact us, but it will not be able to quote guaranteed life insurance.  It is designed more for “medically underwritten” life insurance.

There will never be a better time to take action.  None of use are going to be younger a month from now.  You probably have seen how these rates skyrocket as you age.  You want to lock in the lowest rate possible while you are younger.  Remember, premiums never increase on this Gerber Guaranteed Life Product.  However, your next birth will mak a significant difference in premium when talking about guaranteed life insurance and you have reduced benefits the first two years to consider as well.

So what is that policy typically used for?  Most often final expenses or a burial policy.  Typically, a full funeral with casket and headstone will run about $10,000 depending upon your state.  They are also used cover final bills like medical expenses, credit cards etc. so your loved ones are not burdened further by your loss.

To Make Application for a Gerber Life Policy

Once you have a personal quote and have decided to move forward with this guaranteed issue product, there are 3 ways in which your application to Gerber Life Insurance Company can usually  be processed

  • Voice Signature whereby your conversation is recorded.   All information necessary information is gathered and all disclosures are read back to you.
  • E-Signature whereby your application is completed over the phone and shared with you for review and your signature is completed by typing in your name.  Pretty simple process.  If you need help, just gives us a call.  We can put you on track.
  • A good old fashioned paper application.  Just like we did years ago.  Still works.  We just simply email you this application and you either fax or email it back to use once you have completed the requirements.

 Life Insurance Options To Consider

This Gerber Life Guaranteed life insurance policy is far from the only option for life insurance for most people.  Yes, we understand that you may have been declined elsewhere in the past but just be aware there may be a number of more affordable options that you can opt for.  Each life insurance company “underwrites” a little different so you are going to see a variety of different costs  from company to company and product to product.  While one or more companies may decline you, there may be others that may offer you affordable life insurance coverage that meets your needs. Guaranteed acceptance life insurance like this policy from Gerber are intended for burial or funeral insurance applications specifically.  The typical policy owner with this type of coverage is living with a serious health condition or more.

Don’t believe because you have been diagnosed with a preexisting medical condition that you need guaranteed life insurance.  That is simply not true. Be open minded and look carefully at traditional, medically underwritten life insurance first.  Your best bet is to talk to a high risk life insurance specialist if you have been declined or believe you may be.  Our team knows the companies who work with health challenged people and can sort it out for you.

There are also no medical exam policies, final expense/burial policies (simplified medical questions and no exam) to consider as well.  These offer whole life, permanent insurance as well for less money.  No intent to discourage you with the purchase of a guaranteed life insurance policy, but there are some drawbacks with ownership to keep in mind before purchasing this type of coverage.

Don’t just buy coverage with company because it’s easy or you know the name.  No one likes to get overcharged for life insurance.  Exploring all your options can not only save you big money, but offer the potential for additional and full benefits.

Additional Due Diligence Before Purchasing  Gerber Burial Insurance or Another Guaranteed Life Insurance Product

Remember, Gerber Life only allows coverage as high as $25,000 on this policy.  While that works for final expense and/or burial costs many times, it may not be the full solution if your needs are in excess of $25K.

Do you know how much life insurance you really need?  Do you have a needs analysis that lays our how much life insurance you really need to have if the unexpected happened to you or another loved one?  Make sure you know this amount before you purchase any life insurance whether guaranteed issue or more traditional coverage.

So how do I go about figuring out my needs?  Start with adding up all your debt.  Next figure out expenses related to death…final expenses.  You need to have a goal of having enough life insurance so that your family can continue to move on comfortably if you were no longer able to support the family needs due to tragedy.  The amount needed to cover any remaining mortgage, loans (personal and/or business etc.), credit cards etc.  Your family would be stuck with these.  Could your family handle this without you?  The sad reality is, more often than not, many families would be in financial shambles regardless of which adult passed on and would have to sacrifice the life that they were living.

In Conclusion

I am going to slip in a “Disclaimer” here because you should only buy guaranteed issue life insurance if all else fails.  Yes, it is easy to obtain, but it is also not the best product for most people who need a smaller amount of life insurance due to the elevated “guaranteed issue” premiums.  Most people age 50 + can qualify for a simplified issue policy which costs a lot less…just for answering some basic health questions.  Simplified Issue is designed for people with less than perfect health such as senior citizens.  It also offers additional benefits such as full death benefit coverage upon insurer approval.  Health conditions are “normal” among seniors.  We work with seniors on a regular basis.  Remember, guaranteed issue policies do not pay the full amount of the policy the first two years.

If you choose to call us, we will want to qualify you for the full benefits and the lower premiums.  In other words, the hassle free and more affordable options  first.  If for some reason you cannot qualify, we have no reason to not recommend Gerber Life Insurance Company and their guaranteed issue product.  In most cases, this company will be the most affordable guaranteed issue policy available.  This product is also available thru our office.

If you are age 80+ and looking at this for burial expenses, we strongly recommend looking at a prepaid burial plan versus guaranteed issue if you cannot qualify for less costly simplified issue coverage.  As you can see for the quotes above it gets expensive. Simplified Issue is the way to go for burial insurance/final expenses at those ages.  A prepaid plan thru a funeral home should be a strong consideration if you can’t qualify on your health as you approach age 80.

If you are overloaded here and are confused about anything, please don’t be shy and give us a call.  Gerber is an excellent company that offers excellent financials to support their ability to pay their claims.  You might consider looking at the other no exam life insurance options on the market today before you act on this information.

We don’t know what is coming down the road for us.  Make a pact with yourself to take action now.  Whether that is a phone call or an email, keep the process moving.  Life insurance only gets more expensive as you age.  We would be glad to answer any and all of your questions to your satisfaction.  It is our goal to help you get the best rates possible.  Take the next step in insuring your family would never be left in a financial crater.  Let us know how we can help.

 

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